364 search results for marc rosenberg

the essence of cpa firm profitability

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what mickey mouse can teach accountants about accounting.

by marc rosenberg, cpa
author of the rosenberg map survey

it has been said that organizations should never have profitability as a goal. why? because profitability should be the result of an organization’s efforts, not its goal. profitability is a measure of success in accomplishing core business goals. the disney corporation probably says it best in their mission statement, which is short and sweet, but very powerful: “our mission is to make millions happy.”

related: compensation issues for the new managing partner | 20 decisions for your firm’s new partner compensation committee | three ways to break partner gridlock in an accounting firm | what partners are entitled to, and what they’re not entitled to | how to make partner? | why accounting firm partners are “popping prozac like m&m’s” | more…

disney super-pleases parents by creating hundreds of quality movies and lovable characters children grow up with and adore, and by creating theme parks that tap into our fantasies and imagination.

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the essence of cpa firm profitability

by

what mickey mouse can teach accountants about accounting.

by marc rosenberg, cpa
author of the rosenberg map survey

it has been said that organizations should never have profitability as a goal. why? because profitability should be the result of an organization’s efforts, not its goal. profitability is a measure of success in accomplishing core business goals. the disney corporation probably says it best in their mission statement, which is short and sweet, but very powerful: “our mission is to make millions happy.”

disney super-pleases parents by creating hundreds of quality movies and lovable characters children grow up with and adore, and by creating theme parks that tap into our fantasies and imagination. they create the disney magic by operating their entertainment facilities with fastidious devotion to efficiency and cleanliness, and fanatical attention to the tiniest details, and by countless other efforts. disney’s customers not only pay for their access to disney, but they do so with a smile on their face, and they keep coming back for more. at disney, the philosophy is clear: create and maintain a world-class organization that satisfies the customers’ needs, and the profits will come as a result.

related: compensation issues for the new managing partner | 20 decisions for your firm’s new partner compensation committee | three ways to break partner gridlock in an accounting firm | what partners are entitled to, and what they’re not entitled to | how to make partner? | why accounting firm partners are “popping prozac like m&m’s” | more…

the same theme is true with cpa firm profitability. to be truly profitable, firms need to achieve successfully business goals other than profitability. then, and only then, will firms be profitable.

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how to identify your firm’s core values

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and some examples to consider.

by marc rosenberg, cpa
author of how to operate a compensation committee

core values are the attitudes and beliefs that define a firm’s culture and a critical ingredient in a successful compensation plan.

 

more marc rosenberg practice management trends and guidance: three ways to break partner gridlock in an accounting firm | what partners are entitled to, and what they’re not entitled to | how to make partner? | why accounting firm partners are “popping prozac like m&m’s” | the 15-item checklist for your next partner retreat | five key responsibilities for a new partner| planning a partner retreat for real results | 6 steps to get your business to the next level | the 10 biggest mistakes in reading map statistics | re-engineering partner accountability | marc rosenberg: why cpas aren’t making more money [video] | marc rosenberg: slow learners need not apply | 10 to-do’s for a partner buyout

partners talk about the firm’s core values all the time, pointing out instances when someone’s behavior has clearly been impacted by them. these values are incorporated in processes throughout the firm, such as in the development and evaluation process, in the way income is allocated to partners, and in what raises are given to staff.

when identifying your firm’s core values, consider: read more →

the keys to success for compensation committees

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why firms need comp committees and how some of them do it right.

by marc rosenberg, cpa
author of how to operate a compensation committee

cpa firms are increasingly turning to the use of formal compensation committees for a number of reasons. chief among them: it’s the best way to achieve a balance between recognizing traditional production accomplishments and rewarding intangibles.

the convergence of three aspects of cpa firm management

the compensation committee approach aligns the firm’s (1) strategic plan and core values with how partners are (2) evaluated and how they are (3) compensated. it motivates partners to produce what the firm needs them to produce.

related:  compensation issues for the new managing partner  |  20 decisions for your firm’s new partner compensation committee  | three ways to break partner gridlock in an accounting firm  | what partners are entitled to, and what they’re not entitled to | how to make partner?  |  why accounting firm partners are “popping prozac like m&m’s”  | more…

at most firms, there is a disconnect between these three functions. but at the better managed firms, they are integrated.

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cpa firm compensation plans and the law of unintended consequences

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“unintended,” maybe. but not altogether unforeseeable.

with a new generation of cpas taking over as managing partners comes a host of new questions and issues. marc rosenberg addresses some of the concerns in compensation issues for the new managing partner, which inspires gary zeune, managing director at the pros & the cons llc, to weigh in on the kind of comp issues that he sees all too often as a fraud-fighter.

zeune comments:

gary zeune
gary zeune

don’t tell anyone but the problem with cpa firms is they’re run by accountants who don’t understand the unintended consequences of decisions.

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compensation issues for the new managing partner

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five factors to consider in their new compensation plan. and five key responsibilities for the new managing partner.

by marc rosenberg, cpa
author of how to operate a compensation committee

baby boomer partners are rapidly approaching retirement age, creating a huge demographic shift. one result of this is a dramatic increase in new managing partners at firms.

many firms are skipping a generation and turning the reins over to “younger” partners. firms are also asking their new mps to divest themselves of a significant part of their client base to enable them to focus more on managing the firm.

how should the new mp be compensated?

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20 decisions for your firm’s new partner compensation committee

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partners need to be something more than production machines. [checklist included.]

by marc rosenberg, cpa

increasingly, cpa firms are adopting the compensation committee system for allocating partner income.  firms are finding that systems such as formulas, pay based on ownership percentage or pay-equal no longer work.  when we compare the usage of the compensation committee today to 5 years ago, the increase in usage ranges from 16% to 26%.

if there is one overarching cause for this significant trend, it’s that firms are understanding that their partners need to be something more than production machines.  in addition to bringing in business, managing a client base and working billable hours (all of which continue to be important values in a compensation committee), partners need to excel in intangible areas such as helping staff grow and develop, developing specialized expertise and teamwork.  the compensation committee is one of the best systems available to cpa firms to allocate income based on this diverse array of performance criteria.

more marc rosenberg practice management trends and guidance: three ways to break partner gridlock in an accounting firm  | what partners are entitled to, and what they’re not entitled to | how to make partner?  |  why accounting firm partners are “popping prozac like m&m’s”  |  the 15-item checklist for your next partner retreat |  five key responsibilities for a new partner  |  planning a partner retreat for real results  |  6 steps to get your business to the next level  |  the 10 biggest mistakes in reading map statistics  |  re-engineering partner accountability  |  marc rosenberg: why cpas aren’t making more money [video]  |  marc rosenberg: slow learners need not apply  |  10 to-do’s for a partner buyout

when firms begin operating their new compensation committees, there is a lot of initial confusion and bewilderment about how to get started.  for example: read more →

three ways to break partner gridlock in an accounting firm

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when one-partner, one-vote isn’t working. 

by marc rosenberg, cpa
author of how to bring in new partners

most firms vote on a one-person, one-vote basis despite varying ownership percentages.

more marc rosenberg practice management trends and guidance: what partners are entitled to, and what they’re not entitled to | how to make partner?  |  why accounting firm partners are “popping prozac like m&m’s”  |  the 15-item checklist for your next partner retreat |  five key responsibilities for a new partner  |  planning a partner retreat for real results  |  6 steps to get your business to the next level  |  the 10 biggest mistakes in reading map statistics  |  re-engineering partner accountability  |  marc rosenberg: why cpas aren’t making more money [video]  |  marc rosenberg: slow learners need not apply  |  10 to-do’s for a partner buyout

but is that always the best way? here are three better ways.

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what partners are entitled to…

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…and what they’re not entitled to. 

partners are entitled to a lot. at some firms, they are virtually royalty. but that’s no way to run a firm these days.

here, marc rosenberg, cpa, and author of how to bring in new partners and a 卡塔尔世界杯常规比赛时间 affiliate, lists what every partner – especially new and wanna-be partners – need to understand.

more from marc rosenberg:  how to make partner? | why accounting firm partners are “popping prozac like m&m’s” | the 15-item checklist for your next partner retreat | five key responsibilities for a new partner | planning a partner retreat for real results | 6 steps to get your business to the next level | the 10 biggest mistakes in reading map statistics | re-engineering partner accountability | marc rosenberg: why cpas aren’t making more money [video] | marc rosenberg: slow learners need not apply | 10 to-do’s for a partner buyout

a partner is entitled to:

1. attend partner meetings and retreats.

2. have access to all confidential firm financial data.

3. receive a return on capital; repayment of capital when he/she leaves the firm. read more →

why accounting firm partners are “popping prozac like m&m’s”

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four reasons behind the succession crisis: the perfect storm.

by marc rosenberg
author of cpa firm succession planning: a perfect storm

let me warn you in advance – reader discretion is advised.

succession planning is a very sobering topic. during several retreats i have led, this issue has literally brought tears to partners’ eyes. they start popping prozac like m&ms. why? because succession planning forces us to confront our own mortality. this is never easy – just ask your estate planning clients.

more marc rosenberg:

the 15-item checklist for your next partner retreat
five new responsibilities for a new partner
planning a partner retreat for real results
the 10 biggest mistakes in reading map statistics
how cpa firms make money in turbulent times
re-engineering partner accountability [video]
why cpas aren’t making more money [video]
slow learners need not apply
10 to-do’s for a partner buyout

before the recession, the aicpa’s survey of firms’ top practice management issues consistently reported succession planning as the no. 1 area of concern. more recently, recession-related issues such as bringing in new clients, client retention and fee pressure have pushed succession planning back to no. 5, but most industry observers regard it as the no. 1 endemic problem in the cpa profession. and it’s going to get worse before it gets better. read more →

the 15-item checklist for your next partner strategy meeting

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how to focus on the big issues.

by marc rosenberg, cpa
guide to planning the firm retreat

most firms spend their time at retreats planning for the future, forming goals and addressing pressing issues and problem areas. the problem areas aren’t day-to-day issues such as purchasing a new copy machine or revising the policy on sick days. the problem areas are more strategic: morale issues, recruiting problems, profitability, etc.

here are some specific examples: read more →

five key responsibilities for a new partner

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it starts with how to make a successful senior manager.

by marc rosenberg, cpa
how to bring in new partners

how are the duties and responsibilities of a new partner different from those of a manager? this is one of the grayest areas in bringing in new partners. read more →